What is Data Residency?
Data residency refers to the physical or geographic location where data is stored and processed. Many regulations and organizational policies require data to remain within specific jurisdictions, often for privacy, security, or sovereignty reasons.
Why Data Residency Matters
Regulatory Compliance
- GDPR (EU data in EU)
- Data localization laws
- Industry-specific requirements
- Government regulations
Data Sovereignty
- National security concerns
- Legal jurisdiction
- Government access rights
- Cross-border transfer rules
Business Requirements
- Customer contracts
- Industry standards
- Risk management
- Performance optimization
Key Considerations
Storage Location
- Primary data center location
- Backup and DR sites
- Cloud region selection
Processing Location
- Where data is computed
- Analytics processing
- AI/ML training locations
Transit Paths
- Data transfer routes
- Network paths
- CDN locations
Challenges
- Multi-cloud complexity
- Global operations
- Evolving regulations
- Cost implications
- Performance trade-offs
Solutions
- Region-specific deployments
- Data localization features
- Contractual guarantees
- Technical controls
- Audit and monitoring